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July 27, 2012

GDP Suggests Time’s Running Out for Obama

Unemployment has stayed doggedly over the 8% mark, and today’s GDP report doesn’t indicate that it can inch much lower before the elections.

This morning’s 1.5% reading on gross domestic product report for the second quarter slightly beat expectations, but it’s still a puny number. And since no sitting president has been reelected when the jobless rate is over 7.8%, President Obama is going to have to campaign that much harder to win the election.

Today’s market rally is probably due to traders gaming Obama’s decreasing chances for a second term, and wishful thinking for another round of quantitative easing.